“It’s scare tactics through and through and I think we should expect better from our insurance industry.”

Click PLAY to hear the full interview

The Treasurer would also ban grandfathered conflicted remuneration paid to advisors.

Financial Planning Association CEO Dante De Gori tells Ross there is one important aspect that needs to be changed.

“Just because the advisor stops receiving those trail commissions it doesn’t actually mean the consumer stops paying them out of their account.

“It’s embedded in the fees. In order for this legislation to be effective… you need to actually enforce the fact that these payments are stopped being paid out of the customers’ account and are being rebated back to them.”